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This statistic highlights JPMorgan’s Productivity by Financial Advisors, reported on a quarterly basis from Q1 2016 onwards.
JPMorgan Chase & Co. (NYSE: JPM) is a financial service holding company and American multinational investment bank headquartered in New York City. It is a part of America’s Big Four banks, with Bank of America, Wells Fargo, and Citigroup. In terms of market capitalization, JPMorgan tops in the world. Incorporated in Delaware, S&P Global ranked the bank as the largest bank in the US.
Founded in San Francisco, Bank of America (NYSE: BAC) is an American financial service and investment bank. It has got central hubs in London, Hong Kong, Dallas, Toronto, and New York City and provides services to more than 10.73% of all-American bank deposits. Bank of America is the 13th largest company in the world, with a market capitalization of $315.5 billion in June 2018. Its primary financial services are investment banking, wealth management, and commercial banking.
The productivity of financial advisors helps the investors to know about the revenue per professional for any period, calculated by dividing the number of financial advisors from total revenue of the period. The better the productivity, the better the revenue results, and if the revenue per professional is low, then it signals that advisers need to boost productivity.
There is a wide gap in the productivity of Bank of America and JPMorgan Chase and Co. over many quarters, as the revenue and advisor count differ. In Q1, JPM has productivity of $535K/advisor, whereas BAC is near to touch the mark of $1 million/advisor. In Q2, BAC is constant with the same productivity, and JPM increased its productivity to $577.8K/advisor. Q3 and Q4 shown contrasting results for both the companies as productivity increased for JPM while decreased for BAC. The quarterly results for Asset and wealth management increased to $3.09B for JPM, while Global Wealth and Investment Management dropped to $4.38B for BAC.
In Q1, productivity for both JPM and BAC increased as the revenue level in the respective segment also increased. Q2 is historic for both the companies as BAC marked the figure of $1 million/advisor, and JPM touched the all-time highest of $673.33K/advisor. The next quarters were tight for both the companies. The productivity for JPM slightly dropped as there was a minute increase in the revenues, whereas a consistent rise in advisors. On the other line, BAC saw constant productivity in last as there was a proportionate increase in revenues and advisor count.
In Q1, both companies witnessed higher productivity compared to a year ago. JPM reported the productivity of $651.14K/advisor, whereas BAC reported $1.04M/advisor. But, in Q2, both the companies reported lower productivity for both companies’ YoY. JPM reported the productivity of $660.36K/advisor, whereas BAC reported the productivity of $1.02M/advisor, as the increase in advisors in both companies is more than the revenue increase. The last two quarters were contrasting as JPM reported a linear decline while BAC reported a linear increase in their productivity.
Q1 was constant for BAC at $1.04M/advisor while JPM saw a decline at $600.63K/advisor, same as a year ago. In Q2, JPM reported the lowest productivity, whereas BAC reported the highest productivity compared to the last two years. The last two quarters showed the same results for both the companies. JPM and BAC witnessed consistent growth in productivity over the last two quarters of the year.
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